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Shareholders Are Raving About How The Okta (NASDAQ:OKTA) Share Price Increased 502%

Simply Wall St
·3 min read
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Investing can be hard but the potential fo an individual stock to pay off big time inspires us. Not every pick can be a winner, but when you pick the right stock, you can win big. One such superstar is Okta, Inc. (NASDAQ:OKTA), which saw its share price soar 502% in three years. Meanwhile the share price is 6.3% higher than it was a week ago.      

 We love happy stories like this one. The company should be really proud of that performance! 

View our latest analysis for Okta

 Okta isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.  

 In the last 3 years Okta saw its revenue grow at 38% per year. That's much better than most loss-making companies. And it's not just the revenue that is taking off. The share price is up 82% per year in that time. Despite the strong run, top performers like Okta have been known to go on winning for decades. In fact, it might be time to put it on your watchlist, if you're not already familiar with the stock.      

 The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). 

 Okta is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Okta stock, you should check out this free report showing analyst consensus estimates for future profits

A Different Perspective

 It's nice to see that Okta shareholders have gained 87% (in total) over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 82%. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand Okta better, we need to consider many other factors. For example, we've discovered 3 warning signs for Okta that you should be aware of before investing here.   

 We will like Okta better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying. 

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.